A quick note this morning. Yesterday's market decline was notable not only for the depth of the decline, but also for the fact that it occurred with poor market breadth. Two analysts examine what this means for the market. Unfortunately no clear conclusion emerges.

Ticker Sense noted the poor breadth in the S&P 500 stocks yesterday. However by their measure this did not indicate much in terms of the direction of the market a day and a week in the future.

TraderFeed looks at the ARMS index, a variation on the A/D line, which registered a 2.85 yesterday. Historically similar measures indicated higher prices over the next few days. However by another measure the negative momentum experienced yesterday tended to spill over into the next few sessions.

The bottom line is that only rarely do all indicators point in a single direction. It is up to each investor to gauge the relative importance of the numerous technical, fundamental and sentiment indicators that flash signals on a daily basis.

More Posts This Week

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.